High settlement maintained performance growth and profit margins stabilized. According to the company's report, in the first half of 21, the company achieved a total operating income of 43.973 billion yuan, an increase of 45% over the same period last year, an increase of 6.16 billion yuan in operating profit, an increase of 13% over the same period last year, and a net profit of 3.71 billion yuan, an increase of 2% over the same period last year. During the reporting period, the non-consolidated statement project contributed 410 million yuan in investment income, taking into account this part of the core return net profit of 3.26 billion yuan, down 0.8% from the same period last year. The core return net interest rate is 7.4%, down 3.4pct from the same period last year. The growth rate of operating profit is lower than that of income, mainly due to the decline in gross profit margin. In the first half of the year, the overall gross profit margin and tax deduction gross profit margin were 20.1% and 18.1%, respectively, compared with 20H1, 5.8pct and 4.4pct, respectively, compared with 20H2, 1.5pct and 0.2pct, respectively, gross profit margin stabilized.

In the first half of the year, sales increased by 18%, and land acquisition was 35%. In terms of sales, the company sold 102.5 billion yuan in the first half, 18% of the same period last year, and 41% of the target of 250 billion yuan at the beginning of the year. The return rate of the company's consolidated sales is 45%, lower than 63% of 20H1. In terms of expansion, the company took 35.4 billion yuan of land in the first half of the year, 35% of the land, and 53% of the land price equity ratio, which is 4.5pct lower than in the past 20 years.

In terms of reserves, the company can sell 7311 million square meters of construction area at the end of the period, an increase of 2.8 per cent over the end of 20 years.

Interest-bearing liabilities fell by 3.5 billion yuan, and the three red lines remained green. As of 21H1, the interest-bearing debt is 94.14 billion yuan, down 15% from the same period last year and 3.5 billion yuan lower than at the end of the year. The three red lines remain green:

The cash short-debt ratio is 1.38x, the net debt ratio is 77.1%, and the withholding asset-liability ratio is 69.6%.

Profit forecast and investment rating: the corresponding EPS for 21-22 years is 1.38 yuan per share and 1.45 yuan per share. Under the downward trend of the overall gross profit margin of the industry, through high settlement to ensure the positive growth of profits, the gross profit margin stabilized as a whole, and gradually bottomed out in the future. In the context of the high heat of the East China market, the distribution of resources is adjusted to a more familiar market. The estimated scale of completion in 21 years will increase by 30%, providing strong support for the increase in settlement performance. Our goal of giving a 21-year 6xPE valuation is to maintain a "buy" rating corresponding to a fair value of 8.27 yuan per share.

Risk tips. The decline in the prosperity of the industry has affected the company's sales, and the progress of the company's real estate settlement has slowed down.